HomeMy WebLinkAbout18 - Property Insurance Program RenewalCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 18
February 24, 2009
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Human Resources, Lauren F. Farley, Risk Manager, 949 - 644 -3302
Ifarlev(o)city. newport-bea ch. ca. u s
SUBJECT: Property Insurance Program Renewal
Issue:
Does the Council approve the cost of $661,021 for expiring property insurance
programs?
Recommendation:
Approve the renewal of the property insurance program with a total premium of
$661,021 for a total insured value of $144,077,105.
Background:
The City purchases five different types of property insurance, master Property (including
boiler & machinery), Earthquake, Flood (Difference in Conditions Coverage), Crime, and
Watercraft. These types of policies provide the City with a broad coverage base to
protect the City's real & personal property and its monetary assets.
Renewal Quotation:
The 2008 and 2009 premium comparison for the City's Property Insurance Program is
listed in the chart below:
2008
2009
% Difference
Master Property
$79,036
$72,080
-9%
Earthquake & Flood
$502,580
$518,035
3%
Watercraft
$40,456
$40,456
0%
Property Insurance Renewal
Council Agenda — February 24, 2009
Page 2
Crime
$30,450
$30,450
0%
Total Premium
$652,522
$661,020
1%
The broker has negotiated some additional coverage with no additional premium for this
policy period. That coverage is an increase in the Building Ordinance Sublimit from a
$1,000,000_ Blanket Limit to a $5,000,000 Blanket Limit. Additionally, even with a 5%
increase in Total Insured Value, the City is getting a 9% decrease in premium.
Fundinq Availability:
Funds which cover the recommended expenditure are in the Internal Services Budget —
Insurance Reserve Fund, # 3020 -8715, 8721 & 8726.
Prepared by:
Sheri Anderson, Sr. HR Analyst
Submitted by:
�C G
HR Director
Lauren Farley, Risk Manager